PDF · Test series
CA Inter Advanced Accounting: AS 26 and AS 28 Impairment Test with Answers
- Shared by
- Kavyansh
- Course
- CA Inter
- Subject
- Advanced Accounting
- Added
- 6 Nov 2026
Part of: CA InterAdv Accounting
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This is a chapter test on Advanced Accounting for CA Inter, covering AS 26 Intangible Assets and AS 28 Impairment of Assets. It has four questions with worked answers: impairment loss after a downward revaluation of property, plant and equipment, treatment of research expenditure, the research and development phase split for internally generated intangibles, and whether impairment applies to a single machine that is part of a cash generating unit. It suits students practising ICAI-style descriptive questions for the Advanced Accounting paper.
What the test covers
The paper works through recoverable amount as the higher of net selling price and value in use, and shows how carrying amount is built up after depreciation and a revaluation charged to profit and loss. The research and development questions explain that research cost is expensed while development cost can be capitalised, and that costs which cannot be separated are treated as research. The final question tests the idea that an individual asset that is not itself generating cash flows is judged at the level of its cash generating unit, so no impairment is recorded if that unit is not impaired.
How to use it for revision
Attempt the questions in the time shown on the paper, then compare each working with the answer, especially the carrying amount table in Question 1 and the comparison of recoverable amount with carrying amount. Note the paragraph references to AS 26 and AS 28 so you can cite them in exam answers. Redo Question 4 alone to practise deciding when a cash generating unit test is needed.
Who should read it
This test is useful for CA Inter students preparing Advanced Accounting who need practice on AS 26 and AS 28 problems. It is a good check after studying the impairment and intangible asset chapters, before moving to full-length mock papers.
Key topics in these notes
- Impairment of assets under AS 28
- Recoverable amount and value in use
- Carrying amount after revaluation
- Research expenditure under AS 26
- Research and development phase
- Cash generating unit testing
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Frequently asked questions
What is the main topic of this CA Inter test?
It tests AS 26 Intangible Assets and AS 28 Impairment of Assets through four compulsory questions with answers.
How is recoverable amount decided in this test?
Recoverable amount is the higher of net selling price and value in use, and an asset is impaired when its carrying amount exceeds this figure.
Is research expenditure capitalised under AS 26?
No, the answer states that research expenditure is recognised as an expense when incurred, while development expenditure may be capitalised.
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